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Investment Securities | 9 Months Ended
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Sep. 30, 2018
Investment Securities [Abstract] |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows:
|  | Sep tember 30, 2018
|  |  | Amortized |  | Gross Unrealized |  | Fair
(dollars in thousands) |  |  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 8,981 |  | 2 |  | 349 |  | 8,634
SBA securities |  |  | 3,635 |  | - |  | 163 |  | 3,472
State and political subdivisions |  |  | 8,460 |  | 39 |  | 127 |  | 8,372
Asset-backed securities |  |  | 6,583 |  | 13 |  | 10 |  | 6,586
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FHLMC |  |  | 8,012 |  | - |  | 361 |  | 7,651
FNMA |  |  | 30,100 |  | 1 |  | 933 |  | 29,168
GNMA |  |  | 3,168 |  | 1 |  | 166 |  | 3,003
Total mortgage-backed securities |  |  | 41,280 |  | 2 |  | 1,460 |  | 39,822
Total investment securities available for sale |  | $ | 68,939 |  | 56 |  | 2,109 |  | 66,886
|  | De cember 31, 2017
|  |  | Amortized |  | Gross Unrealized |  | Fair
|  |  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 8,749 |  | 1 |  | 97 |  | 8,653
SBA securities |  |  | 4,087 |  | - |  | 24 |  | 4,063
State and political subdivisions |  |  | 11,242 |  | 179 |  | 25 |  | 11,396
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FHLMC |  |  | 9,102 |  | - |  | 149 |  | 8,953
FNMA |  |  | 29,383 |  | 3 |  | 386 |  | 29,000
GNMA |  |  | 5,618 |  | 2 |  | 82 |  | 5,538
Total mortgage-backed securities |  |  | 44,103 |  | 5 |  | 617 |  | 43,491
Total investment securities available for sale |  | $ | 68,181 |  | 185 |  | 763 |  | 67,603
During the first nine months of 2018, there were $5.8 million of investment securities either sold or called, resulting in a loss on sale of $1,000. During the first nine months of 2017, there were $915,000 of investment securities either sold or called, subsequently resulting in a gain on sale of $2,000. Contractual maturities and yields on the Company’s investment securities at September 30, 2018 and December 31, 2017 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | September 30, 2018
|  | Less than one year |  | One to five years |  | Five to ten years |  | Over ten years |  | Total
(dollars in thousands) |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | - |  | 2,625 |  | 2.12% |  | 6,009 |  | 2.75% |  | - |  | - |  | 8,634 |  | 2.56%
SBA securities |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 3,472 |  | 2.67% |  | 3,472 |  | 2.67%
State and political subdivisions |  |  | - |  | - |  | 816 |  | 2.60% |  | 4,186 |  | 3.09% |  | 3,370 |  | 2.83% |  | 8,372 |  | 2.94%
Asset-backed securities |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 6,586 |  | 2.91% |  | 6,586 |  | 2.91%
Mortgage-backed securities |  |  | - |  | - |  | 3,925 |  | 1.83% |  | 9,119 |  | 1.80% |  | 26,778 |  | 2.48% |  | 39,822 |  | 2.26%
Total |  | $ | - |  | - |  | 7,366 |  | 2.02% |  | 19,314 |  | 2.37% |  | 40,206 |  | 2.59% |  | 66,886 |  | 2.47%
|  | December 31, 2017
|  | Less than one year |  | One to five years |  | Five to ten years |  | Over ten years |  | Total
|  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 995 |  | 1.15% |  | 1,503 |  | 2.04% |  | 6,155 |  | 2.40% |  | - |  | - |  | 8,653 |  | 2.20%
SBA securities |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 4,063 |  | 2.45% |  | 4,063 |  | 2.45%
State and political subdivisions |  |  | - |  | - |  | 1,163 |  | 1.96% |  | 7,162 |  | 2.84% |  | 3,071 |  | 2.76% |  | 11,396 |  | 2.73%
Mortgage-backed securities |  |  | 432 |  | 0.99% |  | - |  | - |  | 11,328 |  | 1.84% |  | 31,731 |  | 2.06% |  | 43,491 |  | 1.99%
Total |  | $ | 1,427 |  | 1.10% |  | 2,666 |  | 1.59% |  | 24,645 |  | 2.27% |  | 38,865 |  | 2.15% |  | 67,603 |  | 2.17%
The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at September 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
|  | September 30, 2018
|  |  |  | Less than 12 months |  |  |  |  | 12 months or longer |  |  |  |  |  |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
(dollars in thousands) |  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 3 |  | $ | 3,368 |  | $ | 86 |  | 6 |  | $ | 4,764 |  | $ | 263 |  | 9 |  | $ | 8,132 |  | $ | 349
SBA securities |  | - |  |  | - |  |  | - |  | 2 |  |  | 3,472 |  |  | 163 |  | 2 |  |  | 3,472 |  |  | 163
State and political subdivisions |  | 4 |  |  | 3,491 |  |  | 48 |  | 5 |  |  | 1,935 |  |  | 79 |  | 9 |  |  | 5,426 |  |  | 127
Asset-backed securities |  | 2 |  |  | 3,474 |  |  | 10 |  | - |  |  | - |  |  | - |  | 2 |  |  | 3,474 |  |  | 10
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  | - |  |  | - |  |  | - |  | 10 |  |  | 7,651 |  |  | 361 |  | 10 |  |  | 7,651 |  |  | 361
FNMA |  | 4 |  |  | 5,476 |  |  | 60 |  | 23 |  |  | 23,656 |  |  | 873 |  | 27 |  |  | 29,132 |  |  | 933
GNMA |  | 1 |  |  | 1,206 |  |  | 70 |  | 2 |  |  | 1,776 |  |  | 96 |  | 3 |  |  | 2,982 |  |  | 166
Total |  | 14 |  | $ | 17,015 |  | $ | 274 |  | 48 |  | $ | 43,254 |  | $ | 1,835 |  | 62 |  | $ | 60,269 |  | $ | 2,109
|  | December 31, 2017
|  |  |  | Less than 12 months |  |  |  | 12 months or longer |  |  |  |  |  |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
|  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 5 |  | $ | 4,184 |  | $ | 22 |  | 4 |  | $ | 3,968 |  | $ | 75 |  | 9 |  | $ | 8,152 |  | $ | 97
SBA securities |  | 1 |  |  | 2,936 |  |  | 13 |  | 1 |  |  | 1,127 |  |  | 11 |  | 2 |  |  | 4,063 |  |  | 24
State and political subdivisions |  | 3 |  |  | 1,214 |  |  | 9 |  | 2 |  |  | 792 |  |  | 16 |  | 5 |  |  | 2,006 |  |  | 25
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  | 3 |  |  | 2,897 |  |  | 26 |  | 7 |  |  | 6,056 |  |  | 123 |  | 10 |  |  | 8,953 |  |  | 149
FNMA |  | 11 |  |  | 14,345 |  |  | 135 |  | 13 |  |  | 14,597 |  |  | 251 |  | 24 |  |  | 28,942 |  |  | 386
GNMA |  | 2 |  |  | 2,270 |  |  | 40 |  | 1 |  |  | 971 |  |  | 42 |  | 3 |  |  | 3,241 |  |  | 82
Total |  | 25 |  | $ | 27,846 |  | $ | 245 |  | 28 |  | $ | 27,511 |  | $ | 518 53 |  | $ | 55,357 |  | $ | 763
At September 30, 2018, the Company had 14 individual investments with a fair market value of $17.0 million that were in an unrealized loss position for less than 12 months and 48 individual investments with a fair market value of $43.3 million that were in an unrealized loss position for 12 months or longer. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. The Company also considers other factors such as the financial condition of the issuer, including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, the Company has concluded that these securities are not impaired on an other-than-temporary basis. Other investments are comprised of the following and are recorded at cost which approximates fair value.
(dollars in thousands) |  | September 30, 2018 |  | December 31, 2017
Federal Home Loan Bank stock |  | $ | 4,373 |  | 3,754
Investment in Trust Preferred securities |  |  | 403 |  | 403
Other investments |  |  | 153 |  | 305
Total other investments |  | $ | 4,929 |  | 4,462
The Company has evaluated the Federal Home Loan Bank (“FHLB”) stock for impairment and determined that the investment in the FHLB stock is not other than temporarily impaired as of September 30, 2018 and ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB. At September 30, 2018, there were no securities pledged as collateral for borrowings or client deposits. At December 31, 2017, $7.7 million of securities were pledged as collateral for repurchase agreements from brokers.

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